Incoming orders: "The mechanical engineering sector clearly remains on a growth path"

The German mechanical and plant engineering industry is still moving.

The industry posted a 47 percent increase in orders in May compared to the previous year, which was marked by the corona crisis, the industry association VDMA announced on Friday.

Domestic demand increased by 33 percent, and orders from abroad rose by 55 percent.

As recently as April, orders had soared by 72 percent.

"But mechanical engineering is clearly on a growth path," said VDMA chief economist Ralph Wiechers.

In the three-month period from March to May, which was less affected by fluctuations, total orders also increased by 47 percent in real terms compared to the previous year.

The association had only increased its forecast for 2021 at the beginning of June.

Production in the industry will increase by ten percent this year, said the President of the Association of German Mechanical and Plant Engineering (VDMA), Karl Haeusgen.

The industry, which was initially badly shaken by the consequences of the Corona crisis, has felt the tailwind again since last autumn.

"However, we are concerned about the tense situation in the supply chains and the renewed discussion about border closings in the EU," warned Wiechers: "We must not jeopardize the economic upswing in Europe again with a patchwork of border controls."